During his inaugural address at the White House, the newly sworn-in President of the United States Donald Trump wasted no time outlining the key pillars of his administration’s policy agenda. From ambitious national projects to international strategies, his speech laid out a roadmap for what he envisions as a revival of America’s greatness.
Among the multitude of topics discussed were the reclaiming of Greenland ushering in a new “American Golden Era,” expanded exploitation of domestic mineral resources, and a mission to land on Mars with technological support from his friend Elon Musk. However, one policy stance has already sent shockwaves through the automotive sector and beyond: the end of the Green Deal (in the US).
A campaign against electric vehicles
Under the new administration, electric vehicles will no longer benefit from subsidies or tax incentives. This policy aims to level the playing field, allowing Americans to freely choose between internal combustion engine vehicles and EVs without government influence.
The move raises pressing questions about the future of EV sales in the U.S., especially when compared to the enduring appeal of traditional V8 trucks—a hallmark of American automotive culture.
The uncertainty looms large, particularly given the significant number of Teslas sold in the U.S. under former President Joe Biden’s pro-EV policies (but we all know that Elon Musk can’t be considered a good enterpreneur anymore).
President Trump’s vision includes revitalizing the American automotive industry, a sector that, apart from Tesla—the undisputed leader in EV innovation—has historically been skeptical of widespread electrification. The President’s policies also aim to curb the import of Chinese cars, which have gained traction due to their highly competitive pricing. By imposing stricter trade measures, the administration hopes to protect domestic automakers and bolster the economy.
EU is not happy
Automakers are on edge. The industry has already invested billions in constructing EV factories and developing cutting-edge electric models. These new guidelines could lead to a sharp decline in EV sales, which were already facing headwinds. Adding to the uncertainty is President Trump’s intent to ramp up domestic mining operations.
By exploiting the country’s natural resources more aggressively, the administration aims to reduce costs and combat inflation.
The implications of these policies extend beyond U.S. borders. If the American automotive market undergoes significant change, the effects will cascade across Europe and other regions. Automakers worldwide will have to navigate an increasingly complex and competitive landscape.
Only time will tell how these dramatic shifts in policy will reshape the automotive industry and the broader landscape of mobility and sustainability. For now, one thing is certain: the Trump administration’s bold vision is set to redefine the future of transportation in America and beyond.
